Article Sidebar

Download
PDF
Statistic
Read Counter : 926 Download : 818

Downloads

Download data is not yet available.

Main Article Content

Abstract

Sustainable economic growth has become one of the economic goals of concern for policymakers around the world. Financial inclusion has received significant attention in planning strong policies to achieve growth goals. This study aims to analyze how fast the response to economic growth is due to shocks to financial depth, financial access, and financial stability in 34 provinces in Indonesia, 2014-2019. This study uses vector auto-regression (VAR) models and Granger causality to test the main research questions. The results of the study show that financial depth and stability can promote growth, not vice versa. The existence of shocks to the three financial inclusion variables responded differently to economic growth.

Keywords

Financial depth Financial acces Financial stability Economic growth

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Author Biographies

Purwiyanta Purwiyanta, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia

Academic Profile: Google Scholar; Sinta; Researchgate

Ambar Pujiharjanto, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia

Academic Profile: Google Scholar; ORCID; Sinta

Rini Dwi Astuti, Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia

Academic Profile: Google Scholar; ORCID; Sinta; Researchgate

Ploypailin Kijkasiwat, Khon Kaen University, Thailand

Academic Profile: Scopus; ORCID; Google Scholar; Researchgate

References

  1. Babajide, A. A., Adegboye, F. B., & Omankhanlen, A. E. (2015). Financial inclusion and economic growth in Nigeria. International Journal of Economics and Financial Issues, 5(3), 629–637. https://econjournals.com/index.php/ijefi/article/view/1154
  2. Bigirimana, M., & Hongyi, X. (2018). Research on relationship between financial inclusion and economic growth of Rwanda: Evidence from commercial banks with ARDL approach. International Journal of Innovation and Economic Development, 4(1), 7–18. https://doi.org/10.18775/ijied.1849-7551-7020.2015.41.2001
  3. Demirgüç-Kunt, A., & Klapper, L. F. (2012). Measuring financial inclusion: The global findex database. World Bank Policy Research Working Paper, 6025. https://openknowledge.worldbank.org/handle/10986/6042
  4. Gourène, G. A. Z., & Mendy, P. (2019). Financial inclusion and economic growth in WAEMU: A multiscale heterogeneity panel causality approach. Theoretical Economics Letters, 19(3). https://doi.org/10.4236/tel.2019.93033
  5. Group, W. B. (2013). Global financial development report 2014: Financial inclusion (Vol. 2). World Bank Publications. https://openknowledge.worldbank.org/handle/10986/16238
  6. Gujarati, D. (2012). Econometrics by Example. Palgrave Macmillan. http://zalamsyah.staff.unja.ac.id/wp-content/uploads/sites/286/2019/11/7-Econometrics-by-Example-Gujarati.pdf
  7. Guney, E., & Demirel, E. (2019). Access to Finance and Financial Inclusion Impacts on Economic Growth. Social Sciences, Management and Economics Journal, 1(1), 32–43.
  8. Hariharan, G., & Marktanner, M. (2012). The growth potential from financial inclusion. ICA Institute and Kennesaw State University, 2(5), 1–12.
  9. Kijkasiwat, P., & Chancharat, N. (2022). Financial inclusion in the industry 4.0: the effects of financial inclusion on electronic payments in Thailand. International Journal of Trade and Global Markets, 15(1), 70–78. https://doi.org/10.1504/IJTGM.2022.120884
  10. Kim, D.-W., Yu, J.-S., & Hassan, M. K. (2018). Financial inclusion and economic growth in OIC countries. Research in International Business and Finance, 43, 1–14. https://doi.org/10.1016/j.ribaf.2017.07.178
  11. Lenka, S. K., & Sharma, R. (2017). Does financial inclusion spur economic growth in India? The Journal of Developing Areas, 51(3), 215–228. https://doi.org/10.1353/jda.2017.0069
  12. Mehrotra, A. N., & Yetman, J. (2015). Financial inclusion-issues for central banks. In BIS Quarterly Review March. https://www.bis.org/publ/qtrpdf/r_qt1503h.htm
  13. Mishkin, F. S. (2016). The Economics of Money, Banking and Financial Markets. Pearson Education Inc.
  14. Nwafor, M. C. (2018). The nexus between financial inclusion and economic growth: Evidence from Nigeria. International Journal of Science and Innovation in Social Science, 2(4), 143–149. http://eprints.gouni.edu.ng/236/1/The Nexus between Financial Inclusion and Economic Growth%3B Evidence from Nigeria.pdf
  15. Ogege, S., & Boloupremo, T. (2014). Deposit money banks and economic growth in Nigeria. Financial Assets and Investing, 5(1), 41–50. https://doi.org/10.5817/FAI2014-1-3
  16. Okoye, L. U., Erin, O., & Modebe, N. J. (2017). Financial inclusion as a strategy for enhanced economic growth and development. The Journal of Internet Banking and Commerce, 22, 1–14. https://www.icommercecentral.com/open-access/financial-inclusion-as-a-strategy-for-enhanced-economic-growth-and-development.pdf
  17. Otekunrin, A. O., Chinoda, T., & Matowanyika, K. (2021). The Nexus Between Economic Growth, Financial Development, Financial Inclusion and Financial Innovation in Africa. Asian Economic and Financial Review, 11(8), 672–681. https://doi.org/10.18488/journal.aefr.2021.118.672.681
  18. Sahay, M. R., Cihak, M., N’Diaye, M. P., Barajas, M. A., Mitra, M. S., Kyobe, M. A., Mooi, M., & Yousefi, M. R. (2015). Financial inclusion: can it meet multiple macroeconomic goals? International Monetary Fund.
  19. Sarma, M. (2015). Measuring financial inclusion. Economics Bulletin, 35(1), 604–611.
  20. Sarma, M., & Pais, J. (2008). Financial Inclusion and Development: A Cross Country Analysis. In Annual Conference of the Human Development and Capability Association, New Delhi, 168(10–13), 1–30. https://www.icrier.org/pdf/Mandira Sarma-Paper.pdf
  21. Sethi, D., & Acharya, D. (2018). Financial inclusion and economic growth linkage: Some cross country evidence. Journal of Financial Economic Policy, 10(3), 369–385. https://doi.org/10.1108/JFEP-11-2016-0073
  22. Sethi, D., & Sethy, S. K. (2018). Financial inclusion matters for economic growth in India: Some evidence from cointegration analysis. International Journal of Social Economics, 46(1), 132–151. https://doi.org/10.1108/IJSE-10-2017-0444
  23. Sharma, D. (2016). Nexus between financial inclusion and economic growth: Evidence from the emerging Indian economy. Journal of Financial Economic Policy, 8(1), 13–36. https://doi.org/10.1108/JFEP-01-2015-0004
  24. Singh, R. J., & Huang, Y. (2011). Financial deepening, property rights, and poverty: Evidence from Sub-Saharan Africa. In IMF Working Paper. Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego.
  25. Sotiropoulou, T., Giakoumatos, S. G., & Petropoulos, D. P. (2019). Financial development, financial stability and economic growth in European Union: a panel data approach. Advances in Management and Applied Economics, 9(3), 55–69. http://www.scienpress.com/Upload/AMAE/Vol 9_3_4.pdf
  26. Widarjono, A. (2018). Introductory Econometrics and Its Applications Accompanied by the Eviews Guide. UPP STIM YKPN.
  27. Yorulmaz, R. (2012). Financial inclusion & economic development: A case study of turkey and a cross-country analysis of European Union [Clemson University]. https://tigerprints.clemson.edu/all_theses/1352/